Call HRI to end PMI

In recent years it has become increasingly more common to see home buyers using down payments of 10, 5 or even 0 percent. Naturally, loaning this much presents the lenders with a lot more risk. To offset this risk, these transactions often require Private Mortgage Insurance or PMI. This supplemental policy protects the lender in case a borrower defaults on the loan, and the value of the house is lower than the loan balance.

The amount of the insurance - often $40-$50 per month for a $100,000 house - is commonly rolled into the mortgage payment. Given the size of the overall payment, this additional fee is often overlooked. Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80 percent threshold.

Until recently lenders were under no obligation to tell home owners when they had reached a point where the PMI can be dropped. That all changed in 1999, when the Homeowners Protection Act took effect. In most cases, this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Savvy homeowners can get off the hook a little earlier. The law stipulates that, upon request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent!

The hardest thing for most home owners to know is just when does their principle loan balance reach this magical 80 percent point? That's where the appraisal professionals at HRI can help! It is our job to know the local market dynamics; when and where property values have risen - or declined. A PMI Removal Appraisal from HRI can help you find the value of your home and end your PMI payments. Faced with this data, your lender will most often eliminate the PMI with little trouble, and you can enjoy the savings from that point on. Interested? Click here to learn more about your rights to have PMI removed. Then pick up the phone and call HRI to end PMI today!

 Call HRI Toll Free at 800-773-6115